Tax Planning

The tax issues surrounding any business are extremely complex. However, many of the problems that tend to arise could be avoided with better planning earlier on.

When making any financial decision, either at corporate or personal level, it is vital that tax considerations are taken into account. Only by working with someone who has a thorough knowledge of tax laws and their implications can you avoid unexpected pitfalls and – equally important – identify opportunities to save tax.

Take advantage of the many tax breaks available. For example, do you qualify of any fiscal and / or other benefits under the Business Promotion Act such as investment tax credits, reduced rates of tax, training grants, etc?

If you operate a group of companies in which you have a controlling interest, having the right group structure will allow you to claim group loss relief if applicable. On the other hand, if you group companies trade with one another, there may be a more efficient corporate structure, such as the group becoming one company with separate trading divisions.

If you are considering expanding overseas, differences between tax regimes can often cause complications. You will need to decide how the operation should be established. For example, should you set up a branch or a subsidiary.

Look ahead. Eventually you will want to get money out of the business. Plan now to minimize any future exposure to tax on capital gains. You may also want to give your family a stake in the company in order to protect against duty on transfers upon inheritance. Once again, careful planning is essential.